Where To Stay, Planning Iceland Part 3

Where to stay in Iceland?

Iceland is known for the pure, clean nature. What people enjoy most is the countless miles of landscape that isn’t commercialized.

While enjoying the fjords and hot springs, travelers want to stay in prime spots. Iceland is known for being expensive, having options is great when planning a trip to Iceland.


Hotels in Iceland will not disappoint. The bulk of the hotels have a clean, simplistic look with an airy feel. Reykjavik and other major cities have a plenty of options to choose from, while rural areas will have less options.

Hotels, in major cities, will range from expensive to cheap, large rooms or small rooms, and modern feel to cozy country. There are a few international chains like Hilton, Best Western and Radisson Blu. Also, available, Iceland chains like Icelandair operations and Fosshotel.

Booking a room at a hotel is made easy with the plethora of booking sites. Breakfast at hotels isn’t always included and could cost extra. Hotels can set up transport, reservations for restaurants and excursions.

Hotel Resources:

  • Hotel Iceland
  • Foss Hotels
  • Icelandair Hotels
  • Hotels.com
  • Booking.com
  • Orbitz

Featured Hotels:

  • 101 Hotels
  • Ion Hotels
  • The 5 Million Star Hotel
  • Harbour View
  • Hali Country Hotel


Hostels are travelers go to budget lodging, especially in an expensive place like Iceland. Many hostels offer dorm like rooms or, for an extra cost, a private room with shared bathrooms.

Hostels are also great places to meet other travelers and find ride shares. Frequently they have common areas with activities to keep busy and for enjoyment. HI hostel members get cheaper prices, you can sign up before or once you get to a HI hostel.

Hostel Resources:

  • Hostel Iceland
  • Hostels
  • Hostel World 
  • Hostel Bookers
  • Hi Hostels

Featured Hostels:

  • Loft Hostel
  • Bus Hostel
  • Akureyri Backpackers Hostel

Renting Apartments & Rooms

Looking to cook meals or have a group in one place? Renting apartments and rooms are another great place to stay in Iceland. Many people rent out a single room where you will stay with their family and be treated like family. People will also rent out a whole apartment to their guest.

Renting an apartment or room allows the guest to use the kitchen available. Being able to cook meals will allow travelers to save money, as eating in Iceland is expensive. Minimum stays are common at apartment or room rentals.

Renting Resources:

  • Home Away
  • Airbnb
  • VRBO

Featured Rentals:

  • Black Pearl Apartments
  • Reykjavik4you Apartments


Guesthouses are often one or two rooms ran by a single family. Sometimes there are guesthouses operated like hotels with 15+ rooms. Guesthouses can be more personable as the family would like to interact with the travelers staying at their houses.

Typically, guesthouses are ran like Bed and Breakfasts and offer complementary breakfast. At times, the host will also take you on trips, secret areas and give travelers a local feel while in Iceland. Make sure to read the reviews and know that guesthouses may not be as flexible with middle of the night arrivals.

Guesthouse Resources:

  • Bed & Breakfast
  • Airbnb
  • Visit South Iceland

Featured Guesthouses:

  • Baenirog & Braud
  • Sunna 
  • Skjaldarvik Guesthouse
  • Hofn Guesthouse

Farm Stays

Very similar to guesthouses, but farm stays offer so much more. The travelers will get immersed in the Iceland culture with local activities and possible farm demonstrations.  Horseback rides are a must while staying at a farm stay.

Farm Stay Resources:

  • FarmStays
  • Airbnb

Featured Farm Stays:

  • Bjarteyjar Sandur

Mountain Huts

While in the highlands, mountain huts are the place to stay. They provide basic accommodation, but book up quickly so book in advance.

Mountain Hut Resources:

  • Airbnb
  • Nordic Adventure Travel

Featured Mountain Huts:

  • Volcano Huts
  • Arbudir Hut


Become one with the nature, literally. Camping is a cheap alternative, but offers more than just saving money. The stars travelers get to count and the views they will see will be priceless.

According to Icelandic laws, campers are allowed to pitch tents if they find themselves away from registered campsites. There are currently 170 registered campsites, most are accommodating to RVs and tents. They are also closed in the winter months. To save even more money, get a camping card. This card is good for 28 nights at participating campsites.

Campsite Resources:

  • Find a Campsite
  • Camping Card Information

Read this post on how to get around Iceland to get to these activities!

Where would you recommend to stay? Leave it in the Comments!


  • Salut, je m'appelle Alexis et j'ai 35 ans. Je suis un passionné de voyage et je partage mes aventures sur mon blog depuis maintenant plusieurs années. Mes destinations préférées sont celles qui sortent des sentiers battus et qui offrent une immersion dans la culture locale. J'aime aussi beaucoup les voyages en solo, qui me permettent de me déconnecter du monde et de me recentrer sur moi-même. En dehors de mes voyages, j'aime aussi beaucoup la randonnée et le camping, et j'essaie de passer autant de temps que possible dans la nature.